Wall Street's Next Bubble - Fracking

Ken O’Brien

The last big financial crisis  was brought about by the sudden collapse of the housing bubble. Synthetic derivatives based on inflated home values and unscrupulous mortgage practices suddenly collapsed leaving investors holding worthless paper that threatened the foundations of world financial markets.

History appears to be repeating itself. However, this time the target is the world energy market.

Collapsing crude oil prices due to oversupply are reaching critical levels. They threaten Wall Street banks, investors and a dozen countries. 

Foremost among these are Russia, Iran and Venezuela, where revenue losses have caused severe financial degradation, and economies are about to implode. 

While Americans are today enjoying $2 per gallon gasoline, Wall Street's analysts are predicting an imminent energy market collapse. This will bring financial institutions to their knees once again, and taxpayers are being set up for another mandatory bailout. 

Senator Warren Blasts Spending Bill

Ken O’Brien

Sen. Elizabeth Warren is not happy about the plan to weaken regulation of big banks that Republicans managed to insert in the spending bill. She's so unhappy, in fact, that she's calling on Democrats to oppose the overall bill unless that provision is removed.

“Who does Congress work for?” Warren said in a speech on the Senate floor Wednesday afternoon. “Does it work for the millionaires, the billionaires, the giant companies with their armies of lobbyists and lawyers, or does it work for all the people?” [...]

“Now, the House of Representatives is about to show us the worst of government for the rich and powerful,” she continued. “The House is about to vote on a budget deal, a deal negotiated behind closed doors that slips in a provision that would let derivatives traders on Wall Street gamble with taxpayer money and get bailed out by the government when their risky bets threaten to blow up our financial system.” 

CNBC Is The Fox News Foothold At NBC

See Part II after the page break.

Wall Street Crapshoot

Ken O'Brien

So you think that we learned something from the 2008 financial meltdown?

Think again.

A major factor in the financial crisis was the use of synthetic derivatives that essentially turned into a casino game. These abstruse financial instruments brought about, among other things, the collapse of Lehman Brothers, the bailout of AIG and numerous banks and the bankruptcy of the country of Iceland.

So it would seem that, if anything, some sanity would be restored to the use of these mechanisms.

Not so.